I am starting off year 2022 with my Personal Analysis of Mapletree Logistics Trust (SGX:M44U). Mapletree Logistics Trust (“MLT”) was listed on the Singapore Exchange Securities Trading Limited in 2005.
The Trust is Singapore’s first Asia-focused logistics real estate investment trust which invests in a diversified portfolio of quality, well-located, income producing logistics real estate in Singapore, Hong Kong SAR, Japan, China, Australia, South Korea, Malaysia, Vietnam and India.
Mapletree Logistics Trust Portfolio
As of 30th September 2021, Mapletree Logistics Trust has a total of 163 properties in its portfolio.
In October 2021, Mapletree Logistics Trust completed the acquisition of 9 Changi South Street 2 in Singapore and a logistics property in Japan.
The acquisition did not stop there. In December 2021, the manager announced its proposal to acquire a further 13 properties in China and 3 properties in Vietnam.
Financial Summary
Mapletree Logistics Trust FY20/21 Financial Results
It is noteworthy that Mapletree Logistics Trust started FY20/21 started with 145 properties and ended with 163 properties. In FY19/20, the trust started with 141 properties and ended with 145 properties.
Mapletree Logistics Trust was able to grow its revenue by 14.3% y-o-y. Revenue growth was attributed to accretive acquisitions in FY19/20 and FY20/21.
| FY20/21 (S$’000) |
FY19/20 (S$’000) |
Change | |
| Gross Revenue | 561,140 | 490,777 | 14.3% |
| Net Property Income | 499,112 | 438,544 | 13.8% |
| Distributable Income (To Unitholders) | 333,079 | 301,706 | 10.4% |
| Distribution Per Unit (“DPU”) (cents) | 8.326 | 8.142 | 2.3% |
In terms of revenue contribution by geography, we can see that Singapore, Japan and Australia are the top 3 revenue contributors.
Occupancy Rates
Based on the latest 2Q FY21/22 financial results, occupancy stood healthy at 97.8%.
Debt
As of 25 October 2021, gearing stood at 38.2%. Debt maturity profile remains well-staggered with an average debt duration of 3.6 years.
Mapletree Logistics Trust has a credit rating of BBB+ (stable outlook) from Fitch.
Distribution History
As you can see below, Mapletree Logistics Trust was able to grow its Distribution Per Unit (DPU) y-o-y. Based on the latest closing share price of S$1.82 (7th Jan 2022) and FY20/21 DPU of 8.326 cents, this translate to a current dividend yield of 4.57%.
I believe you would have read about Mapletree Logistic Trust’s proposed acquisition of 13 properties in China and 3 properties in Vietnam. The Pro Forma DPU is projected to increase 1.1% to 8.415. Based on the closing price of S$1.82, the estimated future dividend yield will be 4.62%.
Current Valuation
The Net Asset Value per unit of Mapletree Logistics Trust is valued at S$1.33. At the closing price of S$1.82, this means that it is currently 36.8% over valued.
From the chart below, I observed that the share price is on the downtrend towards the second half of year 2021. The 1 year lowest price reached was S$1.78 on 9 March 2021.
At current closing price, this poses an opportunity for investors to enter into a position. But investors should take note that there is still a risk that the share price can still go lower.
Summary of My Personal Analysis of Mapletree Logistics Trust
Let me summarize the pro and cons from my analysis of Mapletree Logistics Trust.
- It has a diversified global portfolio and thus it is not dependent on any one market.
- Large portfolio of 163 properties or more which can be overwhelming to manage.
- The overall portfolio occupancy stood healthy at 97.8%.
- Healthy gearing at 38.2% with room for more debt.
- Recent acquisitions frenzy could increase the leverage to 39.1%.
- At the closing price of S$1.82, the current dividend yield is attractive at 4.57%.
- Proven track record to grow DPU year on year.
- Lacklustre Pro Forma DPU of only 1.1% with the proposed acquisition of China and Vietnam properties.
- Mapletree Logistics Trust is trading near to 1 year low of S$1.78. Do note share price can go lower.
I hope you enjoy my Personal Analysis of Mapletree Logistics Trust!